Prudent Corporate Advisory Services Limited IPO: Prudent Corporate Advisory Services Ltd is one of the largest retail wealth management services providers and amongst the top mutual fund distributors in India. Incorporated in the year 2000, Prudent Corporate Advisory commenced its business as a mutual fund distributor but over the years of its presence in the market, it has expanded its business to providing end-to-end solutions to clients relating to equities, insurance, bonds, fixed income products, properties, and loans, etc. that are critical for financial planning decision of an investor.
Prudent Corporate Advisory holds a total of three subsidiaries under its umbrella, namely, Prudent Broking Services Pvt Ltd providing stock trading solutions to clients; Gennext Insurance Brokers Pvt Ltd providing insurance relating solutions; and Prutech Financial Services Pvt Ltd that deals in providing customized financial services to clients based on their needs. With a total of 105 branch locations across 25 states in India, the company currently deals with 7,72,899 clients through 17,583 mutual funds distributors.
Prudent Corporate Advisory Limited IPO Details
The company has filed the Draft Red Herring Prospectus with SEBI on 12Th August 2021 in which it has proposed an Offer for Sale of 85,49,340 shares in total. The following table provides the details of the IPO at a glance:
Prudent Corporate Advisory Limited IPO Timetable
|IPO Open Date||To be Announced|
|IPO Close Date||To Be Announced|
|IPO Size||85,49,340 Equity Shares|
|Offer for Sale||85,49,340 Equity Shares|
|Face Value||₹5 per Equity Share|
|Price Band||₹- to ₹- per Equity Share|
|Listing Exchanges||BSE and NSE|
Prudent Corporate Advisory Limited IPO Issue Size
The Prudent Corporate Advisory IPO has an issue size of 85,49,340 shares each having a face value of ₹5 per share. The issue is completely an Offer for Sale and its value in monetary terms is still undisclosed. Out of this pool, a total of 82,81,340 shares would be offered by Wagner Ltd (an entity of TA Associates) accounting for around 20% of its existing shareholding. The remaining 2,68,000 shares would be offloaded by Shirish Patel, CEO of Prudent Advisory.
Book Building Proportion
As per the DRHP, the Prudent IPO will be distributed in the following way among the various classes of investors:
- maximum 50% will be allocated to the Qualified Institutional Investors (QIBs);
- minimum 15% of the offer will be allocated to the Non-Institutional Investors;
- minimum 35% of the offer will be dedicated to the Retail Investors.
Objects of Issue
The DRHP of Prudent Advisory IPO reveals that the company aims (i) to carry out the offer for sale; (ii) achieve the benefits of getting listed in the Stock Exchanges. The proceeds generated from the issue will go directly to the selling shareholders and nothing will be received by the company.
Prudent Corporate Advisory Limited Fundamentals
If we look at the past years’ records of Prudent Advisory, we can see that it has been a profit-making company. The total revenue of the company has been constantly rising and was recorded as ₹ 235 Cr for FY20 and saw an increase of about 22% for FY21 making it ₹286.5 Cr. The net profit for the company has also been rising as it was ₹28 Cr in FY20 and then it rose to a whopping ₹45.3 Cr in FY21 which represents a rise of about 60%.
The DRHP filed with SEBI shows that Prudent Advisory has appointed Sanjay Shah as the only individual promoter of the company. Other than that, the company also has some promoter groups that include, Maitry Shah, Sakhi Shah, Rameshchandra Shah, Ramesh C. Shah HUF, Sanjay R. Shah HUF, Skillnext Academy, Gokulam Relators, and Kokilaben Charitable Trust.
An assessment of the financial statements of Prudent Corporate Advisory discloses that the major shareholding rests with the company promoter Sanjay Shah holding a 43.43% stake in the capital. The remaining share of 56.57% rests with the promoter groups out of which a majority stake of 39.91% is held by Wagner Limited.
Registrar of Prudent Advisory IPO
Link Intime India Private Limited has been appointed as the registrar of the Prudent Corporate Advisory IPO by the management.
Link Intime India Private Limited
C-101, 247 Park
L.B.S Marg, Vikhroli (West)
Mumbai 400083, Maharashtra, India
Tel: +91 22 4918 6200
Lead Managers of Prudent Advisory IPO
The following entities have been appointed as the lead managers of the Prudent Advisory IPO:
- ICICI Securities Limited
H.T. Parekh Marg Churchgate,
Mumbai 400 020 Maharashtra
Tel: +91 22 2288 2460
- Axis Capital Limited
Axis House C-2,
Wadia International Centre P.B. Marg,
Worli Mumbai 400 025, Maharashtra
Tel: +91 22 4325 2183
- Equirus Capital Private Limited
12th Floor, C Wing,
Marathon Futurex N. M. Joshi Marg,
Lower Parel, Mumbai 400 013, Maharashtra
Tel: +91 22 4332 0700
Lastly, we would just say that the Prudent Corporate Advisory IPO could turn out to be a good option to invest in as the company has been profit-generating in recent years with the profits increasing every year. But we would recommend that the investment decision must be purely at the discretion of the investor and based completely on the respective research and detailed analysis of the company by the investor. A good-looking company might not be a good investment avenue for investors.